Colliers International published the most recent report on the hotel market in Lisbon and Porto, with both cities performing well and continuing to command international attention. The rising prices kept RevPAR in an upwards trajectory, despite the slight correction in occupancy, experienced by both cities.
The occupancy correction has been worrying hotel operators, raising questions whether Lisbon and/or Porto will be able to cope with such an increased supply. Colliers studied the problem and concluded both cities still have “rooms” to grow.
“Both cities have a finite capacity to absorb new hotel rooms, however demand and supply performance, international comparisons and other market indicators, upstream or downstream, indicate both cities have potential to grow further” says Gustavo Castro, Research Director at Colliers, in Portugal. “Obviously, more competition and more international players, will lead to a more rigorous selection process by tourists and the creation of better and differentiated products” adds Gustavo Castro.
This year, Colliers also paid attention to Algarve, where prices have been growing without hurting demand, in spite of not experiencing the same growth scenario as Lisbon and Porto. Algarve also has potential to grow, especially with some opportunities yet to be (better) explored, such as sports events tourism or health and wellness tourism.